Correlation Between Xinjiang Baodi and Shenzhen
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Shenzhen AV Display Co, you can compare the effects of market volatilities on Xinjiang Baodi and Shenzhen and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xinjiang Baodi with a short position of Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Shenzhen.
Diversification Opportunities for Xinjiang Baodi and Shenzhen
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Shenzhen is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display and Xinjiang Baodi is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xinjiang Baodi Mining are associated (or correlated) with Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Xinjiang Baodi i.e., Xinjiang Baodi and Shenzhen go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Shenzhen
Assuming the 90 days trading horizon Xinjiang Baodi is expected to generate 1.55 times less return on investment than Shenzhen. But when comparing it to its historical volatility, Xinjiang Baodi Mining is 1.27 times less risky than Shenzhen. It trades about 0.02 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,976 in Shenzhen AV Display Co on October 16, 2024 and sell it today you would earn a total of 103.00 from holding Shenzhen AV Display Co or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 93.95% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Shenzhen AV Display |
Xinjiang Baodi and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Shenzhen
The main advantage of trading using opposite Xinjiang Baodi and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi position performs unexpectedly, Shenzhen can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shenzhen will offset losses from the drop in Shenzhen's long position.| Xinjiang Baodi vs. Eastroc Beverage Group | Xinjiang Baodi vs. Shengda Mining Co | Xinjiang Baodi vs. Zhengzhou Coal Mining | Xinjiang Baodi vs. Shenyang Blue Silver |
| Shenzhen vs. Pengxin International Mining | Shenzhen vs. Xinjiang Baodi Mining | Shenzhen vs. Glodon Software Co | Shenzhen vs. Beijing Baolande Software |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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